Rec. USA Now a “Roll-Out” Firm
Recreation USA, the RV dealership chain officially known as Holiday RV Superstores Inc., now is a “roll-out,” not a “roll-up” firm, according to Marcus Lemonis, the company’s new chairman.
What that means is Recreation USA plans to grow by building new dealerships from scratch, instead of buying existing dealerships, Lemonis told the Miami Herald newspaper.
Lemonis’ plan is to open new dealerships in Las Vegas and Myrtle Beach, S.C., before next March 31 and to open one new dealership per quarter after that, he said.
Recreation USA will open new dealerships in locations where they can generate $12 million to $15 million in annual sale revenue, Lemonis, 28, told the Herald.
Recreation USA lost $4.9 million during the first nine months of its fiscal year 2001, which ended July 31, so it must get an OK from Bank of America (BofA), its primary floorplan credit source, in order to expand. Recreation USA’s line of credit with BofA now is $25 million, down from $55 million two years ago, according to the newspaper.
However, Lemonis, who became the Recreation USA chairman last month, said BofA is happy with the progress the company is making in turning itself around.